55
EX-12

                   SOUTHERN INDIANA GAS AND ELECTRIC COMPANY

               COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                   For the Five Years Ended December 31, 1993


                            1993       1992     1991      1990      1989
                                          (in thousands)
EARNINGS AS DEFINED
                                                   
Net income                $39,653    $36,767  $38,513   $37,691   $36,216
Add:
  Income Taxes:
    Current:
       Federal              5,897     13,049   14,176    12,025    13,404 
       State                1,312      2,444    2,436     1,642     2,116 
    Deferred, net:
       Federal              9,682        550    2,996     5,597     5,496 
       State                1,581        439      690     1,532       823 
    Deferred investment
     tax credit, net       (1,868)    (1,873)  (1,877)   (1,883)   (1,878)
  Interest on long-term
   debt                    18,437     17,768   18,238    18,249    18,102 
  Amortization of premium,
   discount and expense
   on debt                    773        446      740       667       714 
  Other interest              746        461      719       572     2,173 
  Interest component of
   rent expense <F1>          405        391      382       369       351 

    Earnings as defined   $76,618    $70,442  $77,013   $76,461   $77,517 

FIXED CHARGES AS DEFINED

  Interest on long-term
   debt                   $18,437    $17,768  $18,238   $18,249   $18,102 
  Amortization of premium,
   discount and expense
   on debt                    773        446      740       667       714 
  Other interest              746        461      719       572     2,173 
  Interest component of
   rent expense <F1>          405        391      382       369       351 

    Fixed charges as
     defined              $20,361    $19,066  $20,079   $19,857   $21,340 

Ratio of Earnings to
 Fixed Charges <f2)          3.76       3.69     3.84      3.85      3.63 
<FN>
NOTES:
<F1>   One-third of rentals represents a reasonable
approximation of the interest factor.
<F2>   The ratios shown above do not reflect the fixed
charge component in the Company's power contract with OVEC
(see "Electric Business", page 1).  Inclusion of the
component in the computation would not have a significant
effect on the ratios.